Data for April has shown that in its first year of operation Southern Response, the government-owned company settling AMI policyholders' Canterbury earthquake damage claims, has completed a third of the claims in its book.

'Had AMI collapsed it could have severely impacted on the lives of thousands of Canterbury families, leaving them with broken homes and uncertainty over getting them repaired or rebuilt,” says Canterbury Earthquake Recovery Minister Gerry Brownlee.

'Today we are seeing strong progress in closing claims and rebuilding homes and Southern Response is ramping up its rate of settlement and exploring ways to deliver new houses, faster.”

Southern Response Earthquake Services Ltd is the government-owned company responsible for settling claims by AMI policyholders for Canterbury earthquake damage that occurred before April 5, 2012, when AMI's on-going business was sold to IAG.

Southern Response covers around a third of all major residential earthquake claimants from the Canterbury earthquakes sequence.

Mr Brownlee says it was the Government's judgement that supporting AMI gave certainty to policyholders that their claims would be covered.

Southern Response is handling claims for 6786 earthquake damaged homes and 21,960 properties with earthquake damage to drives, paths, fences, pools etc – which combined with contents, temporary accommodation and loss of rent claims, have a total liability of $2.2billion.

Reinsurance contracts, AMI's investment portfolio and the sale of the AMI brand cover $1.9billion, leaving the Crown with an expected cost of $300million.

'The Government provided stability to the insurance market at a time it was under stress,” Mr Brownlee says.

'Cover was also maintained for those outside Canterbury and we avoided putting the taxpayer's money at risk by setting up a state run insurer.”

Southern Response has targeted December 2016 for the completion of its final claim. For more information visit www.southernresponse.co.nz/progress/

Source: New Zealand Police.